Berkshire has record profit, cash soars to $189 billion as Apple stake sinks

Berkshire also repurchased $2.6 billion of its own stock.

Berkshire Hathaway Inc. posted a record quarterly profit on Saturday, boosted by strength in its insurance operations, and appears to have sold a significant number of Apple shares as its cash stake swelled to $189 billion.

The size of Berkshire’s stake in Apple stake fell 22% to $135.4 billion as of March 31 from $174.3 billion at the end of 2023, even though the iPhone maker’s share price fell just 11% in the quarter.

A large sale would be an about-face for Buffett, who has long touted the iPhone maker’s leadership and market dominance. Some investors have expressed concern that Apple has become too large a part of Berkshire’s investment portfolio.

First-quarter operating profit rose 39% to $11.22 billion, or about $7,807 per Class A share, from $8.07 billion a year earlier.

Net income fell 64% to $12.7 billion, or $8,838 per share, from $35.5 billion.

An accounting rule requires Berkshire to report unrealized gains from its common stock holdings. Buffett urges investors to ignore the resulting volatility.

Berkshire also repurchased $2.6 billion of its own stock. It repurchased a small additional amount in the first three weeks of April.

The results were released ahead of Berkshire’s annual shareholder meeting in Omaha, part of a weekend that draws tens of thousands of people to the city.